Bitcoin rose about 8.3% this month to $74,000, outpacing declines in the S&P 500 and gold while the Nasdaq 100 held steady. Data from Wintermute show institutional OTC demand for bitcoin clustered in the mid-$60,000s, signaling persistent institutional interest in on-chain markets. Derivatives volatility cooled as bitcoin’s spot ETF posted seven consecutive days of net inflows.
The backdrop of Middle East tensions and stagflation concerns has trimmed near-term Fed rate-cut expectations, yet Bitcoin remains an attractive alternative asset in this environment. USDC’s market capitalization neared $80 billion, with analyses linking the surge to UAE capital outflows. Circle’s stock jumped more than 6%, underscoring rising interest in the stablecoin issuer.
Dubai real estate weakness has coincided with growing demand for digital assets, as offshore desks struggle to meet higher stablecoin demand. In February and March, on-chain ETF and futures activity expanded, with Silver futures on Hyperliquid accounting for a meaningful share of SLV ETF activity and on-chain WTI futures volumes surging into the hundreds of millions by mid-March. When U.S. markets opened, oil news had already influenced on-chain activity, with WTI prices briefly retreating toward $90 as ETF holders reassessed risk, highlighting the potential for on-chain volumes to increasingly mirror traditional trading.
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